Russian police and authorities crack down on illegal forex brokers registered in Saint Vincent and the Grenadines, according to local media outlets. The move comes to protect traders and investors in the vast yet often-shady industry.
The number of the apprehended scammers remain undisclosed as of writing. According to the country’s Ministry of Internal Affairs, the said brokers were operating an illegal online trading scheme.

The authorities confirmed the arrests yesterday in an official statement. The initiated criminal proceedings occurred on suspicions of fraud and false representations.

Local reports say that the Russian police held over a dozen officers and approximately 40 private apartments. During the raid operations, the police captured computers and other documents as well. Irina Volk, the official representative of the Russian Ministry of Internal Affairs Irina Volk, representative of the Ministry of Internal Affairs

Irina Volk, the official representative of the Ministry of Internal Affairs, said that about 21 million rubles received damage from the illegal activities. Volk gave information about the preliminary investigations and estimates of the Russian police on the large scale fraud.

The fake online brokers were disguising themselves as official representatives of Larson & Holts, a licensed forex broker. The apprehended suspects were registered in the Marshall Islands but did not have licenses by the Central Bank of Russia who regulates the foreign exchange industry there. Too-Good-To-Be-True Operations

The Russian police also named some of the firms involved in the raid, MTS, and RBC. However, the authorities have not disclosed the names of the individuals involved.

According to the official police statement, the scammers operated a high yield investment program, otherwise called as HYIP. The minimum deposit required by the broker sits at 5,000 US dollars, and the returns were very promising.

Local police advised aspiring investors and traders to remain vigilant on the sites they that respect. An expert advised checking the broker properly before signing up.

It’s important to remain vigilant as more and more online brokerages keep popping up. But one fraud doesn’t generalize the industry. Fortunately, Saint Vincent is also home to some of the world’s leading and best forex brokers.